Bitcoin Falls, Silver Touches Record High Amid Fed Uncertainty

Crypto markets saw heavy selling over the past 24 hours as traders tried to cut their risk, while silver surged to record highs, highlighting a shift in investor sentiment.

According to CoinGlass, more than $346 million in crypto positions were liquidated during this period, affecting over 120,000 traders. The largest single liquidation was a Bitcoin trade on Hyperliquid worth $31.64 million.

This wave of selling pushed Bitcoin further down, continuing its recent decline.

Bitcoin slips amid liquidations

At the time of writing, Bitcoin was trading near $87,800, down around 1.7% in the last 24 hours. Over the past week, the world’s largest cryptocurrency has slipped more than 2%, as leveraged bets were unwound and traders turned cautious.

Data showed that $135.83 million worth of Bitcoin positions were liquidated in a day, with the majority coming from long trades. This suggested that many traders were caught on the wrong side of the move after betting on a rebound.

Ethereum under pressure

The second-largest cryptocurrency also moved lower. Ethereum fell to around $2,940, losing more than 2.5% on the day, as per CoinMarketCap data. 

Nearly $52 million in ETH positions were liquidated, most of them longs. The fall accelerated after Ethereum slipped below the $3,000 mark, a level closely watched by traders.

Silver hits record high as crypto struggles

While crypto struggled, precious metals moved in the opposite direction.

Silver shot up to a record $120 per ounce before pulling back a little to about $119.26, as per TradingView data. In India, it climbed to around ₹4,10,000–₹4,25,000 per kilogram, showing strong demand for the physical metal. Gold also went up sharply, reaching $5,516 per ounce, as investors looked for safer places to put their money.

Economist and Bitcoin critic Peter Schiff reacted to the metals rally on social media, posting: “In 2017, at its peak of nearly $20k, Bitcoin was worth 14.25 ounces of gold. Today it’s worth 16 ounces. That’s a 12% gain in nine years. Was it worth the risk to beat gold by just 1.3% per year? HODLers will find out the hard way as Bitcoin crashes and gold continues to soar.” His comment highlights concerns about crypto, with many investors turning to precious metals for safety.

Global uncertainty fuels safe-haven demand

The rally in metals comes at a time of rising global uncertainty. Markets reacted after U.S. President Donald Trump warned of possible 100% tariffs on Canada if it moved ahead with trade deals involving China. The comments revived fears of trade tensions and pushed investors toward traditional safe havens.

Demand for physical silver has been especially strong in China and India. Market participants say buying of silver bars has increased sharply in recent weeks, tightening supply and pushing prices higher.

Fed policy and market caution

Uncertainty around U.S. monetary policy continues to weigh on markets. The Federal Reserve voted 10–2 to keep interest rates unchanged, pushing back against pressure for immediate cuts. Officials said inflation remains sticky and they want clearer signs before easing policy. The decision has added to investor caution, with many staying away from riskier assets like crypto.

Recent data showed the U.S. unemployment rate fell to 4.4% in December despite weak job growth, and economists expect the Personal Consumption Expenditures Price Index, excluding food and energy, to rise 3% year-over-year for the month, well above the Fed’s 2% target. 

Inflation remains higher than desired, and the latest jobs data leaves little room for quick policy easing. Because of this, investors are being careful and staying away from riskier assets like crypto.

Indian markets stay steady

Indian markets remained steady through the session. The Sensex rose nearly 500 points to close above ₹82,300, while the Nifty gained over 160 points. Investors remained cautious ahead of the Economic Survey and the Union Budget 2026, which are expected to set the direction for markets.

Early signals pointed to a soft start in the next session. Gift Nifty was trading around 25,364, nearly 86 points lower than the previous Nifty futures close, indicating a slightly negative opening. The weakness reflected mixed global cues rather than any domestic concern.

Asian markets showed mixed trends following the US Federal Reserve’s policy decision.

• Japan’s Nikkei: up 0.18%
• Topix: down 0.57%
• South Korea’s Kospi: up 1.09%
• Kosdaq: up 2.69%
• Hang Seng futures indicated a lower open

In the U.S., Wall Street closed mostly higher after the Fed kept interest rates unchanged.

• Dow Jones: up 12.19 points to $49,015.60
• S&P 500: down 0.01% to $6,978.03
• Nasdaq Composite: up 40.35 points to $23,857.45

The S&P 500 briefly crossed the $7,000 mark, showing resilience despite caution around future rate cuts.

Overall, mixed global signals suggest Indian markets may open cautiously, with stock-specific movement likely to drive trading.

Why Bitcoin is falling while silver rises

It’s an old question, but worth asking again: why is Bitcoin going down while silver is climbing?

Traders say it’s all about how risky investors feel things are. When times feel uncertain, people move their money to things that feel safer, like gold and silver. Bitcoin is often called digital gold, but in the short term, it still acts like a risky investment, especially when people are using leverage.

In the past, Bitcoin has sometimes fallen behind gold and silver before bouncing back once things settle down. Whether that happens this time, we’ll have to wait and see. For now, it’s clear that investors are playing it safe, volatility is up, and people are choosing security over big bets.

Also Read: Crypto Trader Makes $2M in 24 Hours on Hyperliquid Amid HYPE Rally

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.